The S&P/ASX 200 Materials Index (ASX: XMJ) is 1.9% in the red today, but three ASX lithium stocks are enjoying a day of big gains.
The Askari Metals Ltd (ASX: AS2), Prospect Resources Ltd (ASX: PSC), and Piedmont Lithium Inc (ASX: PLL) share prices are all surging today.
Let's take a look at why these three ASX lithium stocks are rocketing higher.
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Askari Metals
Askari Metals shares are surging 15.2% today. The company has signed a non-binding lithium strategic partnership agreement with Zhejiang Kanglongda. This will help the company develop its Australian lithium assets in the Northern Territory and Western Australia.
Zhejiang Kanglongda will receive the "preferred offtake position" for commercial production from these projects.
Commenting on the news, executive director Gino D'Anna said:
The lithium partnership agreement with Zhejiang Kanglongda signifies a landmark agreement for the company and validates the potential of our lithium projects within the Northern Territory and the Eastern Pilbara region.
Prospect Resources
Prospect Resources shares are soaring 5.2% higher. This ASX lithium stock is lifting on the back of a drilling update at Step Aside.
The Step Aside Project is located in Zimbabwe, Africa. Drilling intersected with "multiple intersections" of high-grade lithium mineralisation.
Commenting on the news, Prospect managing director Sam Hosack said:
What the initial drilling has shown us is robust intercepts of strong lithium tenor at relatively shallow depths, in multiple places. This is strongly encouraging and demands further, prompt testing.
Piedmont Lithium
Piedmont shares are rising 12.2% today. The company has received a US$141.7 million grant from the US Department of Energy. This funding will be used to help construct the ASX lithium stock's US$600 million Tennessee Lithium project.
Piedmont president and CEO Keith Phillips said the grant will "accelerate the development of the Tennessee Lithium project as a world-class lithium hydroxide operation".
He noted currently, more than 80% of lithium hydroxide production takes place in China.
